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Why eBay Won't Beat Craigslist On Classifieds

Henry Blodget thinks eBay's purchase of Kijiji's classified ads business makes strategic sense because the ads complement eBay's core buying and selling business. But with the free Craigslist as the dominant player in general classifieds, much as eBay is in auctions, the competition may be unbeatable.

If eBay/Kijiji were emphasizing listing quality, seller reputations or some element missing from Craigslist, he says, the competitive story might make some sense, but Kijiji's problem is its dearth of listings. So it's hard to see how "Just like Craigslist--except no listings!" is going to carry the day.

Read the whole story at Internet Outsider Blog »

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